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    Stand Up India and MUDRA

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    Shivam
    PMMY (Pradhan Mantri Mudra Yojana) provides term loans and working capital up to Rs. 10 lakh to small business enterprises through Member Lending Institutions. It aims to promote self-employment. Loans are divided into three categories based on amount (up to Rs. 50,000, Rs. 50,000-500,000, Rs. 500,000-1,000,000). The national targets for loan disbursement have consistently been met except in 2020-21 due to COVID-19.

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    Stand Up India and MUDRA

    Uploaded by

    Shivam
    22 views4 pages
    PMMY (Pradhan Mantri Mudra Yojana) provides term loans and working capital up to Rs. 10 lakh to small business enterprises through Member Lending Institutions. It aims to promote self-employment. Loans are divided into three categories based on amount (up to Rs. 50,000, Rs. 50,000-500,000, Rs. 500,000-1,000,000). The national targets for loan disbursement have consistently been met except in 2020-21 due to COVID-19.

    Original Description:

    Stand up India Circular

    Original Title

    Stand Up India and MUDRA (1)

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    PMMY (Pradhan Mantri Mudra Yojana) provides term loans and working capital up to Rs. 10 lakh to small business enterprises through Member Lending Institutions. It aims to promote self-employment. Loans are divided into three categories based on amount (up to Rs. 50,000, Rs. 50,000-500,000, Rs. 500,000-1,000,000). The national targets for loan disbursement have consistently been met except in 2020-21 due to COVID-19.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    22 views4 pages

    Stand Up India and MUDRA

    Uploaded by

    Shivam
    PMMY (Pradhan Mantri Mudra Yojana) provides term loans and working capital up to Rs. 10 lakh to small business enterprises through Member Lending Institutions. It aims to promote self-employment. Loans are divided into three categories based on amount (up to Rs. 50,000, Rs. 50,000-500,000, Rs. 500,000-1,000,000). The national targets for loan disbursement have consistently been met except in 2020-21 due to COVID-19.

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    PMMY (Pradhan Mantri Mudra Yojana)

    Prime Minister Mudra Yojna, launched with the aim of financing


    of small business enterprises in manufacturing, trading and
    service sectors; including activities allied to agriculture such as
    poultry, dairy, beekeeping etc. by way of providing Term Loan
    and/or Working Capital with a corpus of Rs. 3,000 Crore

    Salient Features:
    ➢ Launched on 8th April, 2015
    ➢ Divided into three Categories:
    (i) Shishu – up to Rs. 50,000/-
    (ii) Kishore – above Rs. 50,000/- and up to Rs. 5,00,000
    (iii) Tarun – above Rs. 5 lakh and up to Rs. 10 lakh.
    ➢ Borrowers can avail loan facility from any Member Lending
    Institution (MLIs) - Public Sector/Private Sector/Foreign/ PMMY year wise
    Regional Rural/Small Finance Banks, NBFC-MFIs, NBFCs
    6.22
    and MFIs. 5.99
    ➢ No processing fee for loans up to Rs. 50,000/- (Shishu 5.07
    4.81
    category).
    3.97
    ➢ Banks have been mandated by Reserve Bank of India (RBI) 3.49 3.37
    3.22 3.22
    not to insist for collateral security in the case of loans up to 2.54
    Rs. 10 lakh extended to units in the Micro and Small 1.81
    Enterprises (MSE) sector. 1.37
    1.05
    ➢ Rate of interest is decided by the MLIs and interest is 0.60

    charged only on the money held overnight by the borrower.


    ➢ MUDRA Card is provided to borrowers for drawing working 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22*
    capital. It is a RuPay Debit Card and can be used for drawing No of A/cs (in Cr.) Sanctioned Amount (in Rs. Lakh Cr.)
    cash from any ATM or make purchase using Point of Sale
    machine (POS).
    *provisional Source - Banks and MLIs
    ➢ Credit Guarantee on portfolio basis to the MLIs.
    ➢ Refinance for Member Lending Institutions (MLIs) from 11
    MUDRA Ltd.
    Target: PMMY - Target vs Achievement
    ➢ Government assigns the annual targets to MLIs based on
    Financial Year Target Achievement %
    previous years’ achievements. Subsequently, MLIs fix (in Rs. cr.) (in Rs. cr.) Achievement
    their own respective State-wise target according to their 2015-16 1,22,188 1,37,449 112%
    area of potential.
    2016-17 1,80,000 1,80,529 100%
    ➢ The national level targets under the PMMY scheme have
    been consistently met since inception of the scheme, 2017-18 2,44,000 2,53,677 104%
    except for FY 2020-21 due to ongoing COVID-19 2018-19 3,00,000 3,21,723 107%
    pandemic.
    2019-20 3,25,000 3,37,465 104%
    ➢ The percentage achievement in different categories under
    PMMY are as under: 2020-21 3,50,000 3,21,759 92%

    2021-22 (as on 3,00,000 59,502 20%


    • Shishu - up to Rs. 50,000/- (87% of loan 30.07.21)*
    accounts) Total 18,21,188 16,12,104
    • Kishore - above Rs.50,000/- and up to Rs.
    5,00,000/- (11% of loan accounts) *provisional
    • Tarun - above Rs. 5 lakh and up to Rs. 10 lakh (2% Source: Banks and MLIs
    of loan accounts).

    12
    Stand-Up India
    The Stand Up India Scheme launched on 5th April, 2016 aims to
    promote entrepreneurship among the Scheduled Caste/ Scheduled
    Tribe and Women by facilitating bank loans of value between Rs.10
    lakh and Rs.1 Crore to at least one SC/ ST borrower and one woman
    borrower per bank branch of Scheduled Commercial Banks for
    setting up Greenfield enterprises in trading, manufacturing and
    services sector. In 2019-20, the Stand Up India scheme was
    extended for the entire period coinciding with the 15th Finance
    Commission period of 2020-25.

    Salient Features:
    ➢ Launched on 5th April, 2016
    ➢ Aims to promote entrepreneurship amongst Scheduled
    Caste/Scheduled Tribe and women borrowers.
    ➢ Facilitate bank loans between Rs. 10 lakh to Rs. 1 Crore to at
    least one SC/ ST borrower and one woman borrower per
    bank branch of Scheduled Commercial Banks for setting up
    Greenfield enterprises in manufacturing, service or trading
    sector and activities allied to agriculture.
    ➢ The borrower to contribute at least 10% of the project cost
    as own contribution.
    ➢ In 2019-20, the scheme was extended up to 2025 coinciding
    with the period of the 15th Finance Commission
    ➢ In budget 2021-22, the margin money from the borrower
    has been reduced from “up to 25%” to “up to 15%” Source :SIDBI
    ➢ Composite loan including Term loan and Working capital
    ➢ Guarantee coverage under Credit Guarantee Fund for Stand-
    Up India (CGFSI) operated by NCGTC.

    15
    Activities covered under the scheme:
    ➢ Scheme was originally for setting up Greenfield
    Enterprises in trading, manufacturing and services
    sector.
    ➢ Loans for enterprises in ‘Activities allied to
    agriculture’ e.g. pisciculture, beekeeping, poultry,
    livestock, rearing, grading, sorting, aggregation agro
    industries, dairy, fishery, agriclinic and agribusiness
    centers, food & agro-processing etc.
    ➢ Includes services supporting the above activities
    ➢ Does not include crop loans, land improvement such as
    canals, irrigation, wells
    ➢ A hand holding ecosystem of different agencies has been
    evolved for supporting prospective beneficiaries through
    financial training, skilling, entrepreneurship development,
    work shed requirement, mentoring, application filling/ DPR
    preparation etc.

    Source :SIDBI

    16

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